I might even be able to get away with a slightly lower bid on the property in exchange for a chance at a higher payout in the future.My initial concern is that their cut might have to be cost prohibitively high in order to be appealing.

Affordable Price but then... almost everywhere else seems to be a lot cheaper than CA so a lot of the price looks appealing.

It is a foreclosure and the property and house itself have some appeal.

I would focus more on the analysis/numbers than the aesthetic.

It's a semi-large bank and working with a local credit union seems more appealing (plus the added benefit of proving him completely wrong). 

See what appeals to you.

If you're looking in Central Ohio, most of the listings on the MLS are for over priced garbage that appeal to those in CA, or other ridiculously priced markets.  

Been listening to podcasts and doing a lot of reading and it won't surprise anyone that I find this community to be an amazing resource full of some really thoughtful and kind individuals.We are currently making an offer on a piece of land up in the Seattle area (hopefully around $170k) that appealed to us because of it's location for a possible home when we retire.

But again, that's an aesthetic and budget choice.

Courtney, working as a licensed GC I have done this many , many times but if you take it from me it is easier and more aesthetically pleasing and useful to simpley have plans drawn up , approved for building permits, and build a new third bedroom.